Premium Levy by the Insurance Authority - ICBC (Asia)
Premium Levy by the Insurance Authority
According to the Insurance (Levy) Regulation and the Insurance (Levy) Order under the Insurance Ordinance (Cap. 41) (“law”) effective from 1 January 2018, levies for the insurance premiums are payable by policyholders to the Insurance Authority (IA) through their insurance companies. The levy will be collected by insurance companies while collecting the premium payable from policyholders and will be remitted to IA in accordance with the law.
Except for certain policies (including Reinsurance business, policies underwritten by authorized captive insurers, and marine, aviation and goods-in-transit business) exempt from the levy by law, policyholders of all new or in-force life insurance policies and general insurance policies must pay the levy along with their premium payment. As stated in the law, if a policyholder does not pay the levy as required, the IA may impose a pecuniary penalty on the policyholder, and may recover the outstanding levy as a civil debt.
For further details in relation to the levy matter, please refer to the leaflet from IA.
https://www.ia.org.hk/en/infocenter/files/Small_Levy_Big_Protection_EN.pdf
The amount of the levy imposed on each policy is calculated by a percentage of insurance premiums and is subject to a cap per policy year, details as follows:
| Policy Date / Policy Anniversary Date begins in the following period | Levy Rate | Yearly Levy Cap (HK$) | ||
| Life Insurance Policies | General Insurance Policies | |||
| Phase 1 | 1 January 2018 – 31 March 2019 (both dates inclusive) |
0.040% | 40 | 2,000 |
| Phase 2 | 1 April 2019 – 31 March 2020 (both dates inclusive) |
0.060% | 60 | 3,000 |
| Phase 3 | 1 April 2020 – 31 March 2021 (both dates inclusive) |
0.085% | 85 | 4,250 |
| Phase 4 | 1 April 2021 onwards (date inclusive) |
0.100% | 100 | 5,000 |
Note: ICBC (Asia) Limited is an appointed insurance agent of China Life Insurance (Overseas) Company Limited, FWD Life Insurance Company (Bermuda) Limited and China Taiping Insurance (HK) Company Limited.
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